(Former Name, Former Address and Former Fiscal year, if Changed Since Last Report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days). Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

o

Accelerated file

o

Non-accelerated filer

o

Smaller reporting company

þ

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

Indicate
the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 258,091,442
shares of common stock outstanding atAugust 12, 2013.

And for the Period November 10, 1999 (Date of Inception) to June 30, 2013

Three Months

Three Months

Six Months

Six Months

Cumulative

Ended

Ended

Ended

Ended

Since

June 30,

June 30,

June 30,

June 30,

Inception

2013

2012

2013

2012

NET REVENUES

Sales

$

464,295

$

-

$

-

$

3,140

$

3,740

Royalties

645,180

-

-

-

10,000

TOTAL NET REVENUE

1,109,475

-

-

3,140

13,740

COST OF SALES

431,741

-

-

2,710

2,036

GROSS PROFIT

677,734

-

-

430

11,704

OPERATING EXPENSES

General and administrative

1,812,367

170,699

35,297

269,008

70,987

Legal and accounting

1,706,874

55,651

79,462

168,088

169,809

Patent costs

65,000

-

-

-

-

Payroll expenses (a)

12,153,779

8,204,468

-

8,740,797

-

Research and development

1,179,767

162,819

2,123

311,975

3,380

Sales and marketing

5,124,233

52,197

51,954

104,501

100,262

Total operating expenses

22,042,020

8,645,834

168,836

9,594,369

344,438

LOSS BEFORE OTHER INCOME

(21,364,286

)

(8,645,834

)

(168,836

)

(9,593,939

)

(332,734

)

OTHER INCOME (EXPENSE)

Interest income

63,665

1

1

1

1

Interest expense

(2,264,651

)

(32,978

)

(80,251

)

(74,219

)

(151,958

)

Loss on extinguishment of debt

(1,221,875

)

(1,221,875

)

-

(1,221,875

)

-

Change in fair value of warrants

(12,780,374

)

(858,864

)

(12,780,374

)

-

Fair value of warrants in excess of consideration for convertible preferred stock

(2,995,791

)

-

-

(2,995,791

)

-

Gain on debt forgiveness

340,352

-

-

-

-

Gain on disposition of assets

4,722

-

-

-

-

(18,853,952

)

(2,113,716

)

(80,250

)

(17,072,258

)

(151,957

)

LOSS BEFORE INCOME TAX BENEFIT

(40,218,238

)

(10,759,550

)

(249,086

)

(26,666,197

)

(484,691

)

INCOME TAX BENEFIT

(165,000

)

-

-

-

-

NET LOSS

(40,053,238

)

$

(10,759,550

)

(249,086

)

(26,666,197

)

(484,691

)

Less: Deemed dividend distribution

(1,000,000

)

-

-

(1,000,000

)

-

NET LOSS APPLICABLE TO COMMON STOCKHOLDERS

$

(41,053,238

)

$

(10,759,550

)

$

(249,086

)

$

(27,666,197

)

$

(484,691

)

BASIC AND DILUTED NET LOSS PER COMMON SHARE

$

(0.04

)

$

(0.00

)

$

(0.11

)

$

(0.00

)

BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

240,935,887

145,144,603

233,374,035

145,144,603

(a) - includes share based compensation of $8,987,750 cumulative, $7,939,629 for the three months ended June 30,2013, $8,272,227 for the six months ended June 30, 2013 and $0 for the three and six months ended June 30, 2012

See the accompanying notes to these condensed consolidated financial statements.